One of the concerns highlighted by the recent ﬁnancial crisis, is the existence of banks that are 'too big to fail'.These banks, it is argued, carry with them an implicit guarantee that they will be saved in times of ﬁnancial distress.How do you think the capital structure of these banks compares to that of the other banks, based on the optimal capital structure theories?

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The Answer of One of the concerns highlighted by the recent ﬁnancial crisis, is the existence of banks that are 'too big to fail'.These banks, it is argued, carry with them an implicit guarantee that they will be saved in times of ﬁnancial distress.How do you think the capital structure of these banks compares to that of the other banks, based on the optimal capital structure theories?

One of the Concerns Highlighted by the Recent ﬁNancial Crisis